CRAZINESS CONTINUES, BUT...

10.02.08

...all the talk about limited credit availability that might otherwise hamper real estate purchases really is not much of a problem around here, as far as I have seen. Area banks have (plenty of) money, so if the buyer and the property both meet a bank's lending criteria, deals are easy to put together.

Although activity is somewhat slow, opportunities for excellent purchases abound, if one knows where to look. Once found, the ability to get financing has been relatively easy assuming the credit-worthiness of the buyer is good. Banks have money and they will lend it if all the "components" are right.

One problem for appraisers working on current sales however, is finding comps to value the "deal". This is proving difficult, but there are methods to overcome this and good appraisers are making do, considering values are changing.

Here is an alert about insurance. At the closing, a buyer needs to have an insurance policy in place at the closing. No insurance can mean no closing. It happened in the last week on one transaction and caused discomfort, if not embarrassment for some of the parties involved.

Any "new" buyer purchasing a home in a "strange" area should utilize insurance companies located in/near that purchase area. Also, a buyer should apply for insurance on the pending purchase as soon as the deal is on track for a closing, not a day or so of this closing. By doing this, you can overcome any issues with insurance that might come up, avoiding a last minute delay like that which occurred last week.

©2008 R. Leech features.